Proposed Change to Revenue Recognition Standards

| Audit and Accounting

By  Mike Alerding     Recently, we heard about the proposed changes to accounting for leases. These changes would have widespread effects on many company’s financial statements and how those financial statements are interpreted by banks. Another potential change could have similar effects. The International Accounting Standards Board (IASB) and the Financial Accounting Standard Board (FASB) have released a joint exposure draft on revenue recognition, particularly revenues relating to contracts Read more [...]

The Forgotten Art of Small Business Lending: Where did Adam Smith’s Invisible Hand go?

| Business Miscellaneous

By Mike Alerding     When referring to the current recession, my late father used to say, "If you think this is bad, you should have lived through the Great Depression – now THOSE were hard times". Clearly, economic conditions were much worse in most segments of our economy during the Great Depression, but I still cannot imagine that the plight of small businesses could have been much worse than they are today as it relates to finding a bank that will actually lend money. I am not THAT old (61), Read more [...]

Where will all those audit committee members come from?

| Audit and Accounting

By Mike Alerding     The post-Enron environment has brought unprecedented changes to the world of audit committees, corporate governance and oversight of accounting and financial reporting all over the world. The impact of these changes can be felt and read about in almost every accounting and financial reporting periodical and the changes just keep on coming. Prior to 2002, the accounting and auditing profession evolved quite nicely as the concept of the audit committee caught hold in the U.S. Read more [...]

What Happened to Business Ethics

| Business Ethics

By Mike Alerding     Every time I get a contract to sign, I find it almost impossible to spend the time reading the fine print and trying to understand all of the future implications of the agreement.  As my son, the attorney always reminds me, “Words mean things”. I made an airline reservation the other day and for the first time read all of the fine print associated with the “contract” to provide me with transportation.  The rules were almost limitless and included some scary matters Read more [...]

Another Significant Accounting and Reporting Change

| Audit and Accounting

By Mike Alerding     Banks and other commercial lenders are bracing for yet another significant accounting and reporting change that will affect virtually all of their commercial loan customers.  Proposed changes in operating lease accounting will have profound economic, banking and accounting effects on U.S. businesses. writing college essays for money The International Accounting Standards Board (IASB), which currently sets accounting rules for foreign companies, is working with the Financial Read more [...]